Good to be back, and let's get started by looking at three different recently-listed properties, in conjunction with the poll we posted a short while ago.
The SINGLE-FAMILY
1153 Greenacre Ave (90046)$995,000
3BR / 2BA
1,503 sq ft ($662/ft)
On Market: 2 Days
Peaceful oasis on quiet cul-de-sac in wonderful neighborhood. Graceful floor plan includes 3 spacious bedrooms, living area, tiled fireplace, hardwood floors and custom cabinetry. Beautiful upgraded tile bathrooms. Custom kitchen w/Viking 6 burner/dbl ovens and dining room open to covered patio, tranquil gardens and fountain. Organic gardens include pomegranates, figs, citrus, blueberries, blackberries, roses....Upgrades include dual pane windows, electrical, plumbing and tankless water heater.
Sold: 6/00 - $409,000
Here we have a decent-sized SFR in a nice East WeHo neighborhood that appears to have been somewhat redone. Assuming the upgrades were done after the 2000 purchase, you're still looking at a healthy appreciation since then. Properties like this will be an interesting litmus test of the supply/demand equation for SFRs. Two years ago, $1mm was the minimum entry point, so I wonder if there's a bit of psychology going on here ("look, honey, a place under $1mm!").
It looks like the slightly smaller house just up the block at 1236 Greenacre, which we featured in a past Friday Night Fights feature here has gone "looking for backup" with a last list price of $849,000.
Keep in mind that at the three to four times income rule of thumb for affordability, you're looking at a family making $250-300k/year to be able to afford this, although in this low rate environment, you could argue that it's "affordable" at a $200k/yr income level.
The LARGE CONDO
1424 N. Crescent Heights #20 (90046)$622,710
2BR / 2BA
1,553 sq ft ($401/ft)
HOD: $828/mo
possible Mills Act property (tax credit/reduction eligible)
On Market: 6 Days
REO AMAZING PRICE. RESTORED TO ITS ORGINIAL GRAND STYLE IN 2002. THE FINEST QUALITY MATERIAL AND CRAFTSMENSHIP WITH NO EXPENSE SPARED. EXQUISTE MARBLE AND GRANITE FLRS IN ENTRY OFFICE,KITCHEN AND LIV RM. ALL NEW TOP OF THE LINE APPLIANCES, GRANITE COUNTERS CUSTOM KITCHEN CABINETS. COLUMNS. INLAID MARBLE FLOOR, SOARING CEILINGS WITH RECESSED LIGHTENING. SO MUCH MORE. A MUST SHOW LISTING!
Sold: 6/02 - $662,000
Sold: 12/05 - $1,225,000
Sold: 4/09 - $718,250 (bank buy-back)
Not exactly sure what is going on here, although it looks like from the description, the unit was bought in 2002 and extensively remodeled - to the tune of a doubling of value in 3 years ...
I'm going to say we're at least at a 2002 rollback here, and much further than that if the remodeling was actually done after the 2002 purchase. If that's the case, this is among the most aggressive I've seen banks on REO properties to date. Assuming the Mills Act offsets most of the HOA fee, you're looking at a monthly cost of approx $3500. Getting close to market rents?
We featured Unit #40 in this building back in April, when we praised them for quick reaction on a price cut. However (and there are a couple other units for sale as well, all in the same range), with the prior prices in the upper $700 range, ths unit starts to look very attractive and sets a "comp" for the building. Another example of how banks getting aggressive on REOs will impact the market with another "leg down" for the condo market over the next 6-9 months, in my opinion.
The SMALL CONDO
(a/k/a "renter's alternative")
740 N. Kings Rd. #314 (90069)$255,000
1BR / 1BA
600 sq ft ($425/ft)
On Market: 6 Days
Top Floor Unit! View of Courtyard. This cute open floor plan unit has 1 Bedroom and 1 Bathroom with fireplace and balcony. Wonderful original unit for your first time buyers. A well maintained building, the HOA dues includes EQ Insurance, gas and water. Views of city from rooftop sundeck with BBQ. Meeting room with kitchenette and pool table, Jacuzzi spa, gym, security and garage parking. Located conveniently near restaurants and shopping.
Sold: 3/92 - $103,000
OK, OK, some would argue that any condos are "renter's alternatives", but I think that's certainly the case when it comes to 1BR units. If you're a single person, despite what people might tell you about "condos are a terrible investment", if you see a place you like, in a nice area, that you can "make" into a home, maybe you are the "first time buyer" that the listing suggests.
So, first time buyer, are you renting a 1BR for market rates of $1300-1700 as Craigslist would suggest? If so, you'd be paying about $1700 (pre-tax) on this unit, with $50K out of your pocket for a downpayment, or about $1800 with $25k out of your pocket. Tempting???
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